The Microturbine Systems Market is valued at US$ 71.8 Mn in 2022. Microturbines are new distributed generation technology that is used for stationary energy generation applications. These turbines can produce both heat and electricity on a relatively small scale. A microturbine runs on various types of fuels including biogas, diesel, natural gas, alcohol, hydrogen, and LPG. It can generate power from 25 kW to 1000 kW and can be used in commercial, residential, and industrial sectors. The majority of the applications of microturbines are in the industrial (mining, oil & gas, wastewater plants, and land rigs) and commercial sector (hotels, office buildings, schools, sports centers, supermarkets, swimming pools, and hospitals) due to the benefits they offer.
Global Microturbine Systems Market: Drivers
When compared to reciprocating and other alternative energy generating systems, microturbine systems have fewer movable parts, resulting in lower operating and maintenance costs. Generators based on engines have hundreds of moving parts that need to be serviced regularly, which affects energy production and raises maintenance costs. Microturbine systems can operate for up to 5,000 to 8,000 hours after being installed. Consequently, as a secondary and primary source, microturbines are preferred in several energy-intensive industries. As a result, the growth of the global market for microturbine systems is anticipated to be fueled by these elements over the forecast period.
Global Microturbine Systems Market: Opportunities
Capstone Turbine Corporation and other manufacturers of microturbines have added marine-fueled LNG/diesel marine microturbines and methane-fueled C200 microturbines to their product lines. The company's extensive research and development led to these two developments, which are expected to lower the operating costs of microturbines that use alternative fuels. It is anticipated that the development of leapfrog supercritical CO2 technology, which makes use of the same fuel and generates energy at an increased efficiency of 16 to 19 percent, will lead to the creation of new opportunities and maintain positive market prospects in the years to come. Because it reduces heat input and eliminates the need for cooling technology on the condenser end, this technology has a game-changing effect. In addition, this technology emits less carbon dioxide and produces output with twice the efficiency of current technology.
Global Microturbine Systems Market: Restraints
At the moment, natural gas is frequently utilized as a fuel in microturbines. Manufacturers of microturbines face a threat from the fluctuating natural gas price. In addition, the costs associated with the energy produced by reciprocating engines and microturbines are roughly the same. However, it is anticipated that advanced supercritical CO2 systems that generate energy at a lower cost and make minimal use of natural gas will overcome the challenge. As a result, the expansion of the global microturbine systems market is anticipated to be stifled during the forecast period.
Global Microturbine Systems Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, several industries witnessed significant shift in their business. Microturbines are energy generation technology that is used for energy generation applications. Increasing demand for clean energy is driving the growth of microturbine markets. However, spread of coronavirus disease have a moderate impact on global microturbine systems market. The power supply industry going through hard phase due to the large collected dues that need to be paid to generators, uncertain revenue due to halting of residential and commercial operation and liquidity issues due to restricted cash flow and also having overall low power demand in the sector. Most of the countries have implemented lockdown, due to which there is ban on travel and businesses being shut down that cause obstacles in revenue generation. Further, disruption in supply chain and trade restriction have impacted overall production of the microturbine. Thus, in turn, decreases the demand for microturbine systems market in the future.
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Key Takeaways:
The microturbine systems market was valued at US$ 71.8 Mn in 2022 and is forecast to reach a value of US$ 158.4 Mn by 2030 at a CAGR of 10.40% between 2023 and 2030.
Global Microturbine Systems Market Trends:
Microturbines are typically used in combined heat & power applications. Standby power application is expected to hold a dominant position in commercial use in the near future. This is to avoid losses occurring due to conventional power failure. Microturbines are mainly used in hybrid passenger vehicles. Growing environmental concerns combined with rising global warming and pollution levels are expected to boost the demand for combined heat & power.
Global Microturbine Systems Market: Competitive Landscape
Capstone Turbine Corporation, NewEnCo Ltd., Elliot Company Inc., Micro Turbine Technology BV, FlexEnergy Inc., Ingersoll-Rand Company, and Global Microturbine LLC.
